Smart recovery in Yen pairs. EUR/JPY bounces back from a nine month low!

EUR/JPY climbed to a two week high after rebounding from its multi-month support of 155.60. Euro found some strength as the chief of European Union proposed an 800 million euro defense plan to Rearm Europe aiming to provide military support to Ukraine amidst rift with the U.S. A strong Bullish candle on daily suggests bulls have gained some momentum coupled up with a double bottom in formation signaling potential reversal. Looks like the Yen is also overdone and BOJ’s Deputy Governor Uchida reduced any further expectation for a rate hike through his Wednesday’s speech clarifying that they won’t be raising rates at each policy meeting. Hovering above 20SMA on daily, the pair now eyes the 160 mark. Successful breaching of resistance at 159.70 could take it to higher levels.